Penalty for intent to sell, transfer, or use individually identifiable health information for commercial advantage, personal gain, or malicious harm?

• A. $50,000 fine and up to 1 year
• B. $250,000 fine and up to 10 years
• C. $100,000 fine and up to 5 years
• D. $500,000 fine and up to 20 years

Answer: (B)

When someone knowingly uses or discloses protected health information with the intent to sell, transfer, or use it for commercial advantage, personal gain, or to cause harm, HIPAA imposes criminal penalties. The penalty for this specific intentional misuse is a fine of up to 250,000 dollars and imprisonment for up to 10 years. This higher level of punishment reflects the deliberate exploitation of sensitive health data for profit or malicious purposes. Lesser, non‑intentional or less harmful disclosures carry smaller penalties, which helps distinguish between careless handling and willful wrongdoing.